Notice of Execution and Clearing Agreement and Description of

Notice of Execution and Clearing
Agreement and Description of Contractual
Relationship Between IB UK and IB LLC
1 . This Notice applies only to persons who are parties to the Customer Agreement
Among Customer, Interactive Brokers (U.K.) Limited and Interactive Brokers LLC
("IB UK Customer Agreement") and/or persons who have opened an account ("IB
UK Account") with Interactive Brokers (U.K.) Limited ("IB UK Customers").
2 . Interactive Brokers (U.K.) Limited ("IB UK") has been authorised by the Financial
Conduct Authority ("FCA") to conduct investment business in the U.K. and Europe
and is regulated in the U.K. by the FCA.
3 . Interactive Brokers LLC ("IB LLC") is a U.S.-located affiliate of IB UK. IB LLC is
registered as a broker-dealer with the U.S. Securities and Exchange Commission
and as a futures commission merchant with the U.S. Commodity Futures Trading
Commission.
4 . IB UK and IB LLC are parties to an Execution and Clearing Agreement pursuant to
which IB LLC performs certain services with respect to IB UK Customers, IB UK
Accounts and IB UK Transactions ("Execution and Clearing Agreement"). The
Execution and Clearing Agreement permits IBL to satisfy its obligations
thereunder by using the services of other affiliates of IB UK ("IB UK Affiliates") or
unaffiliated third parties. By executing an IB UK Customer Agreement, an IB UK
Customer enters into a contractual relationship with IB UK and, for the limited
purposes stated therein, with IB LLC. The relationships between IB UK Customers
and IB UK and between IB UK Customers and IB LLC are not altered by the
Execution and Clearing Agreement.
5 . This Notice is intended to be a general disclosure of the relationship between IB
UK and IB LLC, not a definitive enumeration of each and every service that may be
performed by IB LLC with respect to IB UK Customers, IB UK Accounts and/or IB
UK Transactions. Such services may include the performance of any or all of IB
UK's responsibilities under the terms and conditions of the IB UK Customer
Agreement, although nothing in this Notice obligates IB LLC or other IB UK
Affiliates to perform such services. The relationship between IB UK and IB LLC or
other IB UK Affiliates may change from time to time.
6 . IB UK generally shall be responsible for the following:
a. Obtaining and verifying new IB UK Customer and IB UK Account
information and documentation and opening and closing IB UK Accounts.
b . Providing software or otherwise arranging for the transmission through
the IB system of orders (and modifications and cancellations thereof)
submitted by IB UK Customers for the specified securities, options,
futures, currencies and other investment products that IB UK may make
available from time to time for IB UK Customer trading and arranging for
the execution and/or clearance of such orders.
c. Accepting instructions regarding voluntary corporate actions (e.g., tender
or exchange offers) from IB UK Customers and transmitting them to IB LLC
for processing. Neither IB UK nor IB LLC shall be responsible for providing
IB UK Customers with notice of voluntary corporate actions.
d . Determining the commissions and other fees charged to IB UK Customers.
Commission and fee payments owed by IB UK Customers may be shared
and allocated between IB UK and IB LLC as IB UK and IB LLC agree from
time to time.
7 . IB LLC generally shall be responsible for the following:
a. Accepting IB UK Customer orders (and modifications and cancellations
thereof) and transmitting them for execution on various exchanges
through IB LLC, IB UK, another Interactive Brokers Group affiliate or a third
party intermediate broker. Pursuant to the IB UK Customer Agreement, IB
UK and IB LLC reserve the right to reject any IB UK Customer order that
may be transmitted to either of them for execution and/or clearing.
b . In the case of any IB UK Account for which IB UK has agreed to provide
clearing services for the Customer, acting as a self-clearing broker for the
Customer's orders or arranging for the clearing and settlement of the
Customer's executed transactions by IB UK, IB LLC another IB UK Affiliate
or a third party. IB UK Customers that hold IB UK accounts for which IB UK
acts only as an executing broker are required to be either a self-clearing
exchange member or a client of an exchange clearing member. The
exchange-executed trades of such IB UK Customers are taken up for
clearing and settlement by the IB UK Customers' respective clearing
brokers.
c. Performing certain cashiering, client money and custody services for IB UK
Customers, IB UK Accounts and IB UK Transactions. Such services include,
without limitation: (1) accepting and holding all money submitted to fund
IB UK Accounts (including, without limitation, funds submitted for the
purpose of satisfying IB UK's initial and maintenance margin requirements
[collectively, "Margin Requirements"]); (2) receiving, delivering and
transferring securities purchased and sold, borrowed and loaned and
receiving and distributing payment therefor; (3) holding in custody and
safekeeping all securities and payments so received (provided that, with
respect to securities, such securities are delivered via the book entry
system of a clearing organization acceptable to IB UK); (4) paying and
charging interest on IB UK Accounts;(5) receiving and distributing
dividends and other distributions; (6) processing securities as a result of
corporate actions; (7) transferring funds to Customers; and (8) as set forth
in the IB UK Customer Agreement, effectuating the liquidation of IB UK
Customer positions or assets.
d . Extending credit to IB UK Customers, including complying with the Margin
Requirements of IB UK and any relevant regulatory, self-regulatory or
governmental body; and effecting stock loan and borrowing transactions
in accordance with applicable law.
e. Performing certain collection services with respect to IB UK Accounts,
including the collection of all commissions and fees and other monies or
assets due from IB UK Customers under the terms of the IB UK Customer
Agreement.
f . Performing certain back-office and record keeping and reporting
functions with respect to IB UK Accounts, including the preparation of
confirmations (contract notes) and account statements for IB UK
Transactions, distributing such confirmations and account statements
directly to IB UK Customers, maintaining books and records of all IB UK
Transactions, and reporting such information as may be required by
relevant regulatory or self-regulatory organizations or applicable law.
g . Performing technical services related to the IB Trader Workstation, the IB
System, or certain computer hardware or software related thereto.
8 . IB UK requires IB UK Customers to remit all funds related to their IB UK
Transactions or to their IB UK Accounts, or otherwise tendered pursuant to the IB
UK Customer Agreement, either: (a) directly to IB LLC or (b) to a designated
financial institution with which IB LLC maintains a customer account. Funds
maintained by IB LLC are maintained in customer accounts that are held in the
name of IB LLC and are located outside of the U.K. 8. IB UK and IB LLC share
responsibility for the provision of certain portions of the IB UK website and for the
provision of customer service facilities. IB UK has ultimate responsibility for
responding to customer complaints regarding any IB UK Transaction or any IB UK
Account, but IBL is authorized to accept, process and respond to such complaints.
9 . IB UK and IB LLC are authorized to disclose information or documentation relating
to IB UK Customers or IB UK Accounts and IB UK Transactions to each other and to
their respective affiliates. IB UK, IB LLC and their affiliates are authorized to use,
store, or process personal information provided by IB UK customers (or their
employees, agents or representatives) or otherwise acquired from them as set
forth in the IB UK Customer Agreement.
10. IB LLC does not control, audit or supervise the activities of IB UK or its registered
representatives, nor does it verify any information provided by IB UK regarding
any IB UK Customers, orders, Transactions, or Accounts. By electronically signing
this notice, I represent that I have read, understood and agree to the terms and
conditions set forth herein.
By electronically signing this notice, I represent that I have read, understood and agree to
the terms and conditions set forth herein.